MID-HUDSON – Three hospitals in the Mid-Hudson could face closure, layoffs, and/or reduced services due to Medicaid cuts approved by Republicans in Congress and the Trump administration, according to a new study by the consumer watchdog group Public Citizen.
Bon Secours Community Hospital in Port Jervis, Garnet Health Medical Center, Catskills in Sullivan County, and Montefiore St. Luke’s Cornwall Hospital are among 45 hospitals in the state at risk of closing or scaling back services, according to the report. Citing the economy and the state of health care delivery, Garnet last October announced it had signed a letter of intent to pursue an affiliation with the Montefiore Health System.
Left-leaning Public Citizen was founded by liberal activist Ralph Nader, who ran for president as a Green Party candidate in 1996, and is a frequent critic of government and corporate America. Although the potential closures or cutbacks are not confirmed, the report drew a strong response from elected officials.
“An already-strained healthcare system is about to face unprecedented federal cuts, timed to take effect right after this November’s elections, which is not a coincidence,” Senator James Skoufis (D, Orange County) said. “I’m advocating for both efficiencies and plugging gaps wherever realistically possible as we continue to negotiate this year’s state budget. Some federal officials need to get their heads out of their rear ends and realize their decisions are going to decimate many New York families.”
Senator Rob Rolison (R, Poughkeepsie) said that “any shift in healthcare funding deserves serious attention, especially for those hospitals that serve the most vulnerable.”
However, Rolison added: “While we’re still reviewing the full impact of these federal changes, New York State must also take a hard look at its own policies that are driving up costs and limiting flexibility. We have a responsibility to ensure the long-term sustainability of Medicaid while protecting access to care and strengthening our healthcare system.”
Public Citizen labeled a hospital “at risk” if 20% or more of its revenue came from Medicaid or certain other government sources and if it was spending more than it was taking in over three years. The findings point to a wider national challenge: Cuts to Medicaid and Medicare funding can heavily strain hospitals that serve large numbers of patients who depend on those programs.
Health systems across the country treat diverse populations with significant reliance on government coverage. When reimbursement rates fail to keep up with rising care costs, hospitals nationwide face mounting financial pressure. According to the Public Citizen report, nearly 450 hospitals nationwide face a high risk of closing or reducing services due to more than $900 billion in cuts to Medicaid and the Children’s Health Insurance Program (CHIP) that were part of the One Big Beautiful Bill Act.
“I and other Democrats in State and Federal government have long warned about the fallout from cuts in the Republicans’ so-called Big, Beautiful Bill Act,” Assemblyman Jonathan Jacobson (D, Newburgh) said. “Many people will lose benefits, and hospitals throughout the country will need to cut back or even close. I’m hopeful that Democrats will win Congress in November and reverse the brutal cuts from this bill. This isn’t a question of money for the Federal government; it’s a question of priorities.”
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